S&P: Multi Packaging on positive watch

S&P said it placed all of the ratings on Multi Packaging Solutions Ltd. and its subsidiaries on CreditWatch with positive implications.

The CreditWatch positive placement follows news that WestRock Co. intends to acquire Multi Packaging Solutions for $2.28 billion during its fiscal third quarter ending June 30, 2017, S&P said, and plans to repay all of the company's existing debt issues in full.

The agency also said it placed WestRock’s ratings, including its BBB corporate credit rating, on CreditWatch with negative implications.

The agency said it intends to resolve the CreditWatch placements on both companies after it conducts a review of the completed transaction.

The reviews will focus on the combined company's expected operating performance, growth strategies and proposed capital structure, S&P said, as well as the likelihood that the deal will receive regulatory approval.

The agency said it does expect to raise the ratings on Multi Packaging if the transaction is completed as currently outlined.

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